Our brief take on Perspecta

Many of us may be asking what is Perspecta? The newly formed company has made a big splash after announcing an IPO and senior leadership team Perspecta is the union of the former DXC U.S. Public Sector (HP Enterprise Services), Vencore and KeyPoint Government Solutions. As the cycle of ever larger federal contractors continues, we can expect to see Perspecta changing the competitive landscape.

Perspecta has approximately $4.2 billion in revenue, $10 billion in total contract backlog, and 14,000 employees. With such a robust portfolio, competitors and partners alike may ask: “What exactly is Perspecta?”.

Let’s take a look at what Perspecta has gained from each of its parts:

What does Perspecta gain from DXC USPS?

• When HP Enterprise Services merged with Computer Sciences Corporation (CSC) in April 2017 to form DXC.  It brought with it the massive Navy Next Generation Enterprise Networks (NGEN) contract. With $2.6 billion in obligations to date, NGEN remains as Perspecta’s single largest prime contract.
• DXC USPS also brings the 10-year, Centers for Medicare & Medicaid Services (CMS) Virtual Data Center (VDC) contract. The legacy HPE ES company is the most successful contractor on this multiple award IDIQ. It has been obligated $1.2 billion under CMS VDC.
• The 10-year NASA Agency Consolidated End-User Services (ACES) contract has been obligated $740 million in spending over the course of the contract and is another significant piece of the Perspecta portfolio. This is a primary contract that the company holds with the NASA customer. UPDATE: Leidos wins this away from Perspecta in February 2019.  We’ll have to wait and see how the inevitable protest plays out!

 What does Perspecta gain from Vencore?

• Some of Vencore’s largest contracts included the $113 million NOAA Systems Engineering and Technical Services (SETS), the GSA FEDSIM managed CYBERCOM support IDIQ under which Vencore has $89 million and the $125 million Army Materiel Systems Analysis Activity (AMSAA) Sample Data Collection (SDC) Services contract. Vencore was awarded the $86 million ceiling value SDC follow-on contract in 2018.
• Vencore also provides higher end technical and engineering services for select intelligence community customers.
• Vencore Labs, now Perspecta Labs, is a significant driver for the company’s applied research and engineering capabilities. Originally a part of Bell Labs, the laboratory has supported over 60 government funded research projects and holds multiple patents in cyber security and wireless technologies.

 What does Perspecta gain from KeyPoint Government Solutions?

• KeyPoint Government Solutions’ backlog is centered on background investigations work for the Office of Personnel Management (OPM) and other litigation support.
• KeyPoint’s biggest contract was the OPM Fieldwork Services for Background Investigations contract, which was obligated $977 million over its period of performance. The company won the contract recompete in September 2016.

The FedSavvy Strategies very brief take on “Perspecta”

Perspecta is a combination of vastly different businesses and capabilities. The integrated offerings of Vencore and HP Enterprise Services group will be formidable in the cybersecurity and IT services market. Further, the former Vencore Labs has a robust R&D capability garnering around $70 million a year in funded projects to include cyber and wireless communications projects (as examples).

Perspecta will also have to defend against re-compete threats on contracts such as NGEN.  The NGEN contract is split and recompeted in several segments under the Next Generation Enterprise Network Re-compete (NGEN-R). Perspecta must defend its incumbent work against declared competitor teams such as those led by Leidos and General Dynamics.

Following the loss of the Kennedy Space Center Engineering Services Contract, the legacy Vencore group may be looking to build off of the NASA ACES work to rejuvenate the NASA backlog albeit in very different disciplines.

All these moving parts add up to a large, potentially rejuvenated company that must realize large wins. Perspecta has already announced the intention to pursue the recompetes for the STATE Vanguard 2.2.1 and the Navy’s Personnel and Pay Modernization programs.

The GOVCON game of mergers and acquisitions continues to march on for to a new generation of multi-billion-dollar large businesses who will now compete for the largest service contracts the U.S. Government has to offer.

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Author: Brian Lindholm